Cryptocurrency Mixers Pt. 1: From Privacy Tool to Billion-Dollar Laundering Machine

In just the first half of 2020, over $8 Billion in transaction volume passed through cryptocurrency mixers. Major exchanges such as Binance have become increasingly wary of any affiliation with mixer transactions. But what exactly is a cryptocurrency mixer? What does it do? How does it work?

Figure 1: All of the world’s leading exchanges experience significant exposure to mixer inflow and outflow
  1. Select your desired mixing time, the longer the time, the more thorough the mix.
  2. Pay a small fee (typically 2–5%)
Figure 2. Noncustodial mixers like Wasabi represent likely the most common mixing tools in use today.
Figure 3. A simplified illustration of atypical mixer transaction
Figure 4. An illustration of Plustoken affiliated BTC flowing through mixers to exchanges

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